San Marino: end of EU citizens’ bank secrecy

An EU deal with San Marino, which will make it harder for EU citizens to hide cash from the tax man in bank accounts there, was endorsed by Parliament in a vote on Thursday. Under the deal, the EU and San Marino will automatically exchange information on the bank accounts of each other’s residents, starting in 2017.

The EU and San Marino signed an agreement in December 2016 to clamp down on tax fraud and tax evasion. The information to be exchanged includes not only income, such as interest and dividends, but also account balances and proceeds from the sale of financial assets.

The agreement ensures that San Marino will apply stricter measures, equivalent to those in place within the EU since March 2014. The agreement also complies with the 2014 global standard on the automatic exchange of financial account information promoted by the OECD.

Tax administrations in EU member states and in San Marino will be able to:

identify correctly and unequivocally the taxpayers concerned,

administer and enforce their tax laws in cross-border situations,

assess the likelihood of tax evasion being perpetrated, and

avoid unnecessary further investigations.

The agreement will enter into force on 1 January 2017. Similar agreements were i.a. concluded with Switzerland and Liechtenstein.